NEW ORLEANS, LA--(Marketwired - Nov 4, 2016) - Hibernia Bancorp, Inc. (the "Company") (
Peyton Bush, III, President and Chief Executive Officer of the Company and the Bank, stated, "Net income increased modestly for the third quarter of 2016 compared to the same period in 2015 due to higher net interest income partially offset by higher non-interest expenses. Net income for the first nine months of 2016 increased 32.8% over the prior year period reflecting higher loan volume but also a narrower net interest margin and higher non-interest expenses. Asset quality remains strong with non-performing assets at 0.3% of total assets as of September 30, 2016."
Net interest income increased 2.8% to $906,000 for the quarter ended September 30, 2016, from $881,000 for quarter ended September 30, 2015. Total interest and dividend income increased $87,000, or 8.4%, for the quarter ended September 30, 2016 compared to the quarter ended September 30, 2015. The increase in interest and dividend income reflects a net increase in interest-earning assets and an increase in the average yield on loans. Total interest expense increased $62,000, or 39.0%, for the quarter ended September 30, 2016 compared to the quarter ended September 30, 2015. The increase in interest expense for the quarter ended September 30, 2016 as compared to the quarter ended September 30, 2015 was primarily due to higher average rates on certificates of deposit and higher volume of interest bearing deposits. The net interest margin decreased to 3.12% for the quarter ended September 30, 2016 as compared to 3.33% for the quarter ended September 30, 2015 primarily due to higher interest expense on deposits.
The Company recorded an $18,000 loan loss provision for the quarter ended September 30, 2016, compared to $22,000 for the quarter ended September 30, 2015. The Company reported no net charge-offs for the quarters ended September 30, 2016 or 2015.
Non-interest income remained relatively constant at $33,000 for the quarter ended September 30, 2016 compared to $32,000 for the quarter ended September 30, 2015.
Non-interest expense increased 3.1% to $839,000 for the quarter ended September 30, 2016 from $814,000 for the quarter ended September 30, 2015. The increase in non-interest expense was due primarily to a $35,000 provision for impairment of other assets as well as an increase in occupancy expenses which included higher maintenance expenses on bank premises in the 2016 period.
Income tax expense for the quarter ended September 30, 2016 was $33,000 as compared to $35,000 for the quarter ended September 30, 2015. Income tax expenses are computed by applying the statutory rate to federal taxable income, which consists of financial statement income before taxes, adjusted by the amount of permanent income tax differences for the period.
For the nine months ended September 30, 2016, net interest income increased 4.9% to $2.7 million from $2.6 million for the nine months ended September 30, 2015. Total interest and dividend income increased $282,000, or 9.3%, for the nine months ended September 30, 2016 compared to the nine months ended September 30, 2015. This increase was due primarily to an increase in the average balance of loans receivable. Total interest expense increased $155,000, or 34.5%, for the nine months ended September 30, 2016 compared to the nine months ended September 30, 2015. This increase is attributable to both an increase in the average rate and average volume of interest bearing deposits for the nine months ended September 30, 2016 compared to the nine months ended September 30, 2015. The net interest margin decreased to 3.21% for the nine months ended September 30, 2016 from 3.36% for the nine months ended September 30, 2015 primarily due to higher interest expense on deposits.
During the nine months ended September 30, 2016, the Company recorded provisions for loan losses of $50,000 compared to provisions of $64,000 during the nine months ended September 30, 2015. The Company reported no net charge-offs for the nine months ended September 30, 2016 or 2015.
Non-interest income increased to $110,000 for the nine months ended September 30, 2016 from $100,000 for the nine months ended September 30, 2015. The increase in non-interest income was due to higher net rental income for the nine months ended September 30, 2016 as compared to the nine months ended September 30, 2015.
Non-interest expense for the nine months ended September 30, 2016 increased $99,000, or 4.1%, to $2.5 million compared to $2.4 million for the nine months ended September 30, 2015. The increase in non-interest expense was due primarily to increases in other operating expenses, professional fees, data processing expenses and occupancy expenses. The increase in other operating expenses for the nine months ended September 30, 2016 as compared to the nine months ended September 30, 2015 was primarily due to provisions for impairment of other assets, as well as increases in miscellaneous operating expenses, customer debit card fraud losses, and training expenses.
For the nine months ended September 30, 2016, income tax expense was $105,000 compared to $92,000 for the nine months ended September 30, 2015. The increase in income tax expense was due to the increase in the Company's pre-tax income.
Hibernia Bancorp's total consolidated assets at September 30, 2016 were $122.2 million compared to $112.9 million at December 31, 2015, an increase of $9.4 million, or 8.3%. The increase in total assets was primarily due to increases in interest bearing cash of $5.4 million and net loans receivable of $3.3 million. Interest bearing cash increased 216.7%, to $7.8 million at September 30, 2016 from $2.5 million at December 31, 2015 and net loans receivable increased 3.4% to $100.4 million at September 30, 2016 from $97.1 million at December 31, 2015. Both the increase in interest bearing cash and the increase in net loans were primarily funded by an increase of $9.8 million in deposits. The increase in net loans is primarily due to a $9.6 million net increase in commercial loans secured by real estate. Investment securities increased by $375,000, or 5.4%, as a result of investment purchases of $1.1 million offset by maturities and repayments. Total deposits increased 11.0% to $99.4 million at September 30, 2016 from $89.6 million at December 31, 2015, reflecting net increases of $6.5 million in certificates of deposit and $3.9 million in money market and interest bearing checking accounts, partially offset by a decrease of $457,000 in savings accounts.
Non-performing assets, defined as non-accrual loans, accruing loans past due 90 days or more and other real estate owned, increased to $321,000, or 0.3% of total assets, at September 30, 2016, compared to $259,000, or 0.2% of total assets, at December 31, 2015. The non-performing assets at September 30, 2016 consisted of five loans secured by first mortgages on one-to-four family residential real estate. Our allowance for loan losses was $826,000, or 0.82%, of total loans at September 30, 2016, and $776,000, or 0.79%, of total loans at December 31, 2015. At September 30, 2016 and December 31, 2015, there was no other real estate owned.
The Company's total equity decreased to $20.4 million as of September 30, 2016 from $20.8 million as of December 31, 2015. During the nine months ended September 30, 2016, the Company repurchased 31,051 shares of its common stock for an aggregate cost of $622,000. An additional 65,000 shares are available under the Company's sixth stock repurchase program discussed below. The Company's book value per share increased to $24.10 at September 30, 2016 from $23.62 at December 31, 2015 due to our net income for the nine month period and our stock repurchases. Hibernia Bank's regulatory capital levels continue to exceed requirements for well-capitalized institutions.
The Company announced today that on October 27, 2016, its Board of Directors approved a sixth stock repurchase program. The new repurchase program provides for the repurchase of up to 65,000 shares, or approximately 7.7% of the Company's outstanding common stock as of the date hereof. The sixth repurchase program will commence November 9, 2016. The repurchases will be made from time to time, in the open market or privately negotiated transactions, as and when deemed appropriate by management and in accordance with applicable securities laws. Such shares will be held as authorized and unissued shares to be available for general corporate purposes, including the use of such shares for future issuance pursuant to the Company's stock option plan.
Statements contained in this news release which are not historical facts may be forward-looking statements identified by words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, including, but not limited to, changes in interest rates, changes in demand for loans, deposits and other financial services in the Company's market area, changes in asset quality and general economic conditions. We undertake no obligation to update any forward-looking statements.
Hibernia Bank, the wholly-owned subsidiary of Hibernia Bancorp, Inc., has served the New Orleans metropolitan area since 1903. Operating from its main office and two branches, Hibernia Bank offers loan, deposit and on-line banking services to commercial and individual customers in the New Orleans metropolitan area. Additional information about Hibernia Bank is available at www.hibbank.com.
| Hibernia Bancorp, Inc. and Subsidiary | ||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||||
| (In thousands) | ||||||||||
| September 30, | December 31, | |||||||||
| 2016 | 2015 | |||||||||
| (Unaudited) | ||||||||||
| ASSETS | ||||||||||
| Cash - Non-Interest Bearing | $ | 983 | $ | 624 | ||||||
| Cash - Interest Bearing | 7,849 | 2,478 | ||||||||
| - | ||||||||||
| Total Cash and Cash Equivalents | 8,832 | 3,102 | ||||||||
| Certificates of Deposit | 100 | 100 | ||||||||
| Securities - Available For Sale | 7,271 | 6,896 | ||||||||
| Loans Receivable, Net of Allowances for Loan Losses of $826,000 at September 30, 2016 and $776,000 at December 31, 2015 | 100,405 | 97,087 | ||||||||
| Accrued Interest Receivable | 254 | 238 | ||||||||
| Investment in FHLB Stock | 187 | 104 | ||||||||
| Investment in FNBB Stock | 210 | 210 | ||||||||
| Premises and Equipment, Net | 4,440 | 4,634 | ||||||||
| Deferred Income Taxes | 317 | 262 | ||||||||
| Prepaid Expenses and Other Assets | 214 | 227 | ||||||||
| TOTAL ASSETS | $ | 122,230 | $ | 112,860 | ||||||
| LIABILITIES AND EQUITY | ||||||||||
| LIABILITIES | ||||||||||
| Deposits | ||||||||||
| Non-Interest Bearing | $ | 8,731 | $ | 8,801 | ||||||
| Interest Bearing | 90,639 | 80,756 | ||||||||
| Total Deposits | 99,370 | 89,557 | ||||||||
| Escrow Balances | 597 | 676 | ||||||||
| FHLB Advances | 1,500 | 1,500 | ||||||||
| Accrued Interest Payable | 57 | 38 | ||||||||
| Accounts Payable and Other Liabilities | 267 | 323 | ||||||||
| TOTAL LIABILITIES | 101,791 | 92,094 | ||||||||
| EQUITY | ||||||||||
| Preferred Stock, $.01 par value - 1,000,000 shares authorized; none issued | - | - | ||||||||
| Common Stock, $.01 par value - 9,000,000 shares authorized; 847,943 and 878,994 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively | 8 | 9 | ||||||||
| Additional Paid in Capital | 11,104 | 11,059 | ||||||||
| Unallocated Common Stock held by: | ||||||||||
| Employee Stock Ownership Plan | (615 | ) | (641 | ) | ||||||
| Recognition and Retention Plan | (133 | ) | (133 | ) | ||||||
| Accumulated Other Comprehensive Income, Net of Tax Effects | 70 | 3 | ||||||||
| Retained Earnings | 10,005 | 10,469 | ||||||||
| TOTAL EQUITY | 20,439 | 20,766 | ||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 122,230 | $ | 112,860 | ||||||
| Hibernia Bancorp, Inc. and Subsidiary | ||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||
| September 30, | September 30, | |||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
| Total Interest and Dividend Income | $ | 1,127 | $ | 1,040 | $ | 3,320 | $ | 3,038 | ||||||
| Total Interest Expense | 221 | 159 | 604 | 449 | ||||||||||
| Net Interest Income | 906 | 881 | 2,716 | 2,589 | ||||||||||
| Provision For Loan Losses | 18 | 22 | 50 | 64 | ||||||||||
| Net Interest Income After Provision For Loan Losses | 888 | 859 | 2,666 | 2,525 | ||||||||||
| Total Non-Interest Income | 33 | 32 | 110 | 100 | ||||||||||
| Non-Interest Expenses | ||||||||||||||
| Salaries and Employee Benefits | 387 | 400 | 1,180 | 1,186 | ||||||||||
| Occupancy Expenses | 136 | 126 | 404 | 390 | ||||||||||
| Data Processing | 107 | 99 | 308 | 293 | ||||||||||
| Advertising and Promotional Expenses | 26 | 26 | 89 | 79 | ||||||||||
| Professional Fees | 45 | 39 | 131 | 115 | ||||||||||
| Other Non-Interest Expenses | 138 | 124 | 401 | 351 | ||||||||||
| Total Non-Interest Expenses | 839 | 814 | 2,513 | 2,414 | ||||||||||
| Income Before Income Taxes | 82 | 77 | 263 | 211 | ||||||||||
| Income Tax Expense | 33 | 35 | 105 | 92 | ||||||||||
| NET INCOME | $ | 49 | $ | 42 | $ | 158 | $ | 119 | ||||||
| INCOME PER COMMON SHARE | ||||||||||||||
| Basic | $ | 0.06 | $ | 0.05 | $ | 0.20 | $ | 0.14 | ||||||
| Diluted | $ | 0.06 | $ | 0.05 | $ | 0.19 | $ | 0.14 | ||||||
Contact Information:
CONTACT:
A. Peyton Bush, III
President and Chief Executive Officer
Donna T. Guerra
Chief Operating Officer and Chief Financial Officer
504-522-3203